Dalal 1

Mitali Dalal
Professor Wilbur
12 pm section
September 15, 2015
Starbuckss Case Questions
1. A)

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B)

During the 21st century, the brand was repositioned as the most recognized and respected

Repositioning Elements
Brand Image

Global Presence

1990s
Capture the image of
a European
Coffeehouse, but still
appeal to Americans
More contemporary
green logo
Best-of-class,
personal treat,
Third Place

Partnerships/New Products

Expansion across
North America and
Japanleading to 25
new stores in Japan
by 1998
UK, South Africa,
Kuwait and Southeast
Asia
Increase brand
awareness and
perception as a
world-class brand
Creation of
Frappuccino and
Dryers coffee ice
cream
Kraft and
supermarkets

Today
Strengthen the core
product, coffee
Make Starbucks the
most recognized and
respected brand in the
world
Manage growth and
diversification

Growth in Europe
Switzerland, Austria,
Spain, Germany and
Greece
By 2006, Starbucks
was in 37 countries

Tazo Tea, Pasqua

Coffee Company
CDs, the film
business, featuring

upcoming artists
music
New Frappuccino
flavors, prepackaged

sandwiches and other

lunch items
DuettoVisa, Internet
Hotspots
Competition
Sales slowed
McDonalds McCaf,
significantly in 1999
Burger King, Dunkin
Donuts and Carls
Junior offered
consistency and
lower prices
brand in the world. Starbucks founder, Schultz, sought to reposition the brand as something
more than just a comfortable place to drink coffee, and created new products which would allow
Starbucks to stand out amongst its competitors. In addition, he used repositioning to merge more
fully with the music and film industries, creating a perception of modernity and greater brand

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recognition. All in all, Starbucks repositioning dramatically increased the brands global
presence and sales.
2. A)

Positives
Luxury/ Premium Brand
Updated brand image
Increased sales due to increased
options
Helps strengthen the idea of a Third
Place or Starbucks as a personal
treat

Negative
May lose teenage/ young adult
segment of target audience in certain
countries due to alcohol age
restrictions leading to loss of revenue
Changes the brand perception from
coffee to alcohol
Competition from cafs, wine bars,
beer gardens

B) Based on my analysis, I do not recommend Starbucks move forward with the

Starbucks Evenings concept, because serving beer and wine will change brand
perceptions in the eyes of the customers, and despite the continuation of the original
coffee line, this may be seen as a negative feature. In addition, Starbucks will face
competition from other local bars, and cafs where customers can receive the same
atmosphere and concept for a lower price. All in all, I believe that Starbucks will only
lose revenue by straying too far from coffee.